Bungie breaks away, goes independent

by Dustin Burg { Oct 5th 2007 at 11:30AM }

The rumors were true and it is now official. Bungie Studios has jumped Microsoft's money-rich ship and have gone independent. In a press release sent out this morning, Microsoft announced plans for Bungie to become an independent developer, but mentioned that they will still retain a "publishing agreement" between both studios and that Microsoft will keep "an equity interest in Bungie". The press release also mentions that Microsoft owns and will retain the Halo IP and that the Peter Jackson Halo project and Halo Wars are still on track for release. No other reasons were given for the split, but it seems to be on good terms.

So fanboys, what do you make of this? The press release sounds way too fluffy and way too civil for such a breakup, but maybe that's really how it is. We aren't sure, but it's going to be extremely interesting to see what Bungie's plans are for the future, how the Halo IP grows and how the two parties work together. Odd times indeed.

[Via Major Nelson]

Tags: bungie, bungie-studios, microsoft, microsoft-game-studios

Reader Comments (Page 1 of 2)

Tony @ Oct 5th 2007 11:33AM

As long as Bungie keeps making games for 360 (which is the only new console I own), I honestly don't really care.

I imagine it's just easier for them to do what they want this way.

Daaknes @ Oct 5th 2007 11:34AM

OMG!!!! I smell a cover up! There has to be more to this story.

xenocidic @ Oct 5th 2007 11:34AM

hrm, I guess I'm eating my hat.

Knight Marquise @ Oct 5th 2007 11:36AM

Richard...cue your clip from the Princes Bride...inconceivable.

Truthfully, my take is this. As in Holleywood, it seems that when actors, acrtresses become filthy rich and famous, the last thing they want to do is what it was that people made them famous for. They want to move away from being "typecast". Jim Carey, for example not wanting to do comedy anymore, and wanting to do "serious" roles.
This is where I feel Bungie is. I love Bungie, but they NEVER would have done or made it as far as this had it not been for that GIANT money machine, aka MS, supporting them and hyping them. I think it's gone to their heads. I think it's on disc 2 of the legendary bonus stuff...Jason Jones makes the comment "Halo came from alot of their earlier wandering around, they want to go back to that wandering around".

This, plain and simple, sucks.

TALLandNcharge @ Oct 5th 2007 11:37AM

Now that Bungie's name is iconic, this is only natural for them to become independent. Everything they touch in gamer's eyes will become gold. The competition can now see what it is to play a Bungie game.

Elliot J @ Oct 5th 2007 11:37AM

I'm happy with it to be honest. This will give Bungie the space they need to try new things. M$ and Bungie made a ton of sweet cash together and as long as they keep producing games for the 360 or future M$ consoles I'm a happy camper!

UNSCleric @ Oct 5th 2007 11:37AM

How were the rumors true? Nothing has changed, Bungie didn't leave Microsoft and will still be making games published by Microsoft only. The only thing that changes is financial crap that has nothing to do with us.

"Bungie has long been built on creativity, originality and the freedom to pursue ideas. Microsoft agreed, and rather than stifle our imagination, they decided it was in both our best interests to unleash it. We’ll continue to make Xbox 360 games, and we’ll continue to make amazing games for MGS. In that regard, nothing has changed. All that has changed is that now Bungie Studios is once again, the property of the folks of Bungie Studios. Microsoft is and will continue to be, a brilliant, inventive and creatively collaborative publishing partner. Practically speaking, nothing has changed and you guys won’t see much, if any difference."

SadisticHam @ Oct 5th 2007 11:38AM

Don't believe Microsoft agreed to it. How retarded.

Stupid move in my book but whatever, as long as they don't turn around and shit on the 360 fans that have supported them for years I'm not going to mind to much.

BobTheMonkey @ Oct 5th 2007 11:40AM

I read this as: "Bungie, thanks for the money from Halo! Because you won't be making any more Halo games soon, we don't need you anymore."

Jonah Falcon @ Oct 5th 2007 11:43AM

Bungie is now Puerto Rico to Microsoft's United States.

Jonah Falcon @ Oct 5th 2007 11:44AM

"I read this as: "Bungie, thanks for the money from Halo! Because you won't be making any more Halo games soon, we don't need you anymore."

Then why is Bungie currently working on Halo 3 DLC?

Kicks @ Oct 5th 2007 11:44AM

This could be good for both sides. Bungie won't be driven by MS to do another Halo game thus giving them freedom to re-visit their Myth series or a re-vamped Oni making it the way they intended. With MS owning them, they were probably forced to work only on what MS wanted them to do

DjDATZ @ Oct 5th 2007 11:47AM

Well, if they don't pull an Epic, then they should be fine.

This should give Bungie more space and freedom in creating their next game(s).

But really, this doesn't change much...

prateeko @ Oct 5th 2007 11:47AM

If anyone took the time to read BUNGIE's press release you'd see strong support for 2nd party status (i.e. way more freedom and monies), "Bungie and Microsoft Corp. today announced a plan for Bungie Studios, the developers of Microsoftâ€™s â€œHaloâ€ franchise, to become a privately held independent company, Bungie, LLC, in which Microsoft will hold a minority equity interest."

Microsoft still has a stake in them, but is it like Nintendo and Rare were, or like Sony and Square before?

iLuvUrOpinion @ Oct 5th 2007 11:52AM

GOOD RIDDANCE!!! YIPEE YAY!
I hope Epic takes over the halo franchise, and reworks it with true next-gen graphics and with weapons that pack fire power -- not the cheezy rehashed Metroid shooting sounds.
I hope Bungie develops exclusively for PS3 to help them deliver on a streak of poor games.

NitroFrost @ Oct 5th 2007 11:53AM

I don't mind they now can do other things but then again they could of did it with MS (or what do I know). I like other games from bungie and I am really looking towards a new release by them ( a none halo game).

Ryan McBride @ Oct 5th 2007 11:59AM

@ #7

I was under the impression that their new status as an independent developer allows them to create games and new properties for whatever system they care to, the notable exception being the Halo franchise. In that, plenty has changed. They're no longer under a major deadline and they don't have the pressure of being the system's selling point any more. They're free to work on their own terms.

However, as far as I know, some of the team have said that they like working on the 360 so I doubt that any earth-shattering developments like a PS3 exclusive...but I could easily see them doing some more work with Apple, especially when you consider some of the recent comments out of Cupertino...

UNSCleric @ Oct 5th 2007 11:57AM

I really hope Bungie doesn't try to be all different and just make dumb, odd games when they could be doing more Halo-related stuff.

wei @ Oct 5th 2007 11:57AM

It's really not a bad thing, I think. I would be content to just get Halo 3 from Bungie this gen. It's a pretty complete game, and we really don't need so much more of the story. The multiplayer will keep everyone busy for years. Not to mention all the other great shooters that are on the near horizon for the 360. I'm really curious and excited to see what IP Bungie will bust out next. It'd be cool to see them delve into a different genre altogether.

Jon W @ Oct 5th 2007 12:07PM

Oni 2 anyone?

TORO @ Oct 5th 2007 12:11PM

Reading Bungie's weekly update, nothing drastically will change. This just means that Bungie can solitary make other games instead of only Halo. Good thing is that they have a long-term agreement with Microsoft and the "Halo" franchise, and when they DO develop another Halo...believe me they will put the MOST effort in creating the best game.

sisedi @ Oct 5th 2007 12:13PM

@ 19
They will still be published by Microsoft which means as long as that partnership exists, any console MS doesn't want getting a Bungie game wont get it and I can bet my house PS3 will be on that list.

Sunny @ Oct 5th 2007 12:14PM

Maybe they'll make a Myth IV now. :)

DA360 @ Oct 5th 2007 12:20PM

Well, I don't see this as being a bad thing at all. Just means Bungie is going from being a first party, Microsoft owned company to a 2nd party company that develops solely for Xbox 360. Essentially their now what Rare was to Nintendo back in the day, just I seriously doubt that Microsoft would ever ditch Bungie like Nintendo pretty much did to Rare (and made them open to Microsoft acquiring them).

But as they said, not much will really be seen on the consumer side. But it does open them up to make more franchises and games beyond just making Halo. Maybe as people were suggesting, they can revisit some of their older franchises, like possibly making a Oni 2 for Xbox 360/PC or something.

Even though I don't see this as a bad thing at all, it is surprising to see them move away from being a first party. But guessing with how much money Halo 3 is making, Bungie also has FAR more than enough to run themselves.

yankeyhotel @ Oct 5th 2007 12:18PM

I guess we are truly just going to have to wait and see what happens. I can totally understand why a company like bungie would want to become independent. In reality I think Microsoft is the one that will hurt the most. I just hope that we continue to see great content on the 360, thats all. And it seems from the press release, at least, that will continue to happen. You might even see that Halo DS game now.

Good for Bungie.

xenocidic @ Oct 5th 2007 12:20PM

My inside source at Bungie told me that the real reason is because Microsoft would not let them release "Pimps at Sea" for the 360, so they will be developing a PS3 version.

mfed3 @ Oct 5th 2007 12:22PM

doesnt change anything, theyre just not going to be overseen so heavily by microsoft now. they are still getting published by ms but the agreement is more of a freedom thing.

TORO @ Oct 5th 2007 12:22PM

Kudos for Bungie! And don't worry guys, MC is still our icon.

Microsot - Masterchief
Nintendo - Mario
Sony - Snake

Jonah Falcon @ Oct 5th 2007 12:25PM

(sigh)

Learn business 101.

You want to know what happened?

Bungie now has its own stock, and makes more money from its work. THAT'S IT.

Microsoft still runs things with Bungie.

Iliad Force @ Oct 5th 2007 12:29PM

This is a fascinating development, and I'd love to have been a fly on the wall when negotiations were taking place. I wonder if the seed for going independent were planted during the run-up to Halo 2's release. I've always had a soft spot for the conspiracy theory that MS pressured Bungie to cut Halo 2 short in order to begin development on Halo 3 for the 360. But who knows? Maybe MS really did decide they earned their independence. Or maybe Bungie employees went to MS and said, "Look, we don't like working for you anymore. You can let us go back to being an independent studio in which we still make games for you, or we can walk now, and whatever is left of 'Bungie' won't be enough to take over the Halo franchise."

track2 @ Oct 5th 2007 12:26PM

If I was Bungie, I'd be so ultra-sick of Halo everything. Bungie became a one-trick pony with Halo, and I'd guess that they're just itching to do something different. Personally I can't wait to see what non-Halo IP they bring to consoles and PC.

And as for the Halo franchise, I could care less about anything after 3.

smak @ Oct 5th 2007 12:27PM

When in doubt... follow the money. They key to this action lays in the press release. Halo is a Microsoft-owned intellectual property. They take the lions share on any royalties, and as a publisher, can print money for years because of this. Bungie doesn't want to work for "free" anymore. Their developers would all be millionaires if they owned the IP, instead of MS.

Hence, divorce! It also means that Bungie is working on something huge that will come out in 3 or 4 years or so... and it won't be Halo.

Jonah Falcon @ Oct 5th 2007 12:28PM

Then why does Microsoft own a chunk of Bungie?

LEARN @*&#^@# BUSINESS 101.

Todd Dominey @ Oct 5th 2007 12:30PM

Imagine how tired of Halo Bungie is at this point. People forget they were working on the original Halo for *years* for desktops before MS swooped in and they converted everything for the xbox. The die-hard Bungie employees are probably *dying* to work on something -- hell, anything -- new. Wouldn't surprise me at all if a number of people left the company now to pursue other projects and dreams, simply because of Halo fatigue.

angryguy77 @ Oct 5th 2007 12:30PM

As long as they keep making halo games on a consistent basis, then this effects none of us. If they dealy futur halo games becuase they are working on some gay project to express their creativity, then we do lose.

Frank @ Oct 5th 2007 12:34PM

"17. I really hope Bungie doesn't try to be all different and just make dumb, odd games when they could be doing more Halo-related stuff."

I think that was the point of them wanting to leave, they are sick of doing Halo. Can't really blame them, they've been doing the same type of game for years.

Marasai @ Oct 5th 2007 12:35PM

This is what I make of it:

New awesome 360 exclusive titles...and new Halo games.

AT THE SAME TIME.

As breakups go, this beats some marriages.

Modeps @ Oct 5th 2007 12:42PM

Truth be told, there's more money to be made by developing for multiple consoles. Bungie now has the reputation of Blizzard, quality titles ALL THE TIME. People will buy them sight unseen no matter what platform they are on.

Jonah Falcon @ Oct 5th 2007 12:42PM

There was no breakup. All that happened was Bungie now has its own stock. It's an LLC now.

DJ K @ Oct 5th 2007 2:19PM

Is it can be Goldeneye XBLA tiem nao plz?

Etchasketchist @ Oct 5th 2007 12:46PM

The Ultimate Question of course is: "will Bungie make games for the PS3?"

Has it been answered?

jabbertrack @ Oct 5th 2007 1:23PM

This is honestly best for both companies and I really doubt there is any bad blood. Microsoft had quite a bit to do with taking what people refer to as an 'average shooter' and creating a name brand not only out of the Halo universe... but out of Bungie itself.

drock1205 @ Oct 5th 2007 1:00PM

As many have said, this is basically a release of royalty rights and control of product. Now Bungie will own its new IPs, and most likely suffer the greatest "risk" when debuting them; Microsoft, as a minority owner, would only bare little risk, while as publisher with what will probably be very generous agreement, a potential for a huge payoff.

In turn, Bungie would get a greater share of success, and also only has to answer to itself for time tables and product direction.

If I had to guess, I bet this happened for two mutually exclusive or even paired reasons.

1. When Microsoft bought Bungie, they had an agreement for when the original cycle would end that Bungie had a "buy out" right, which they executed. However, as their partnership has been both profitable and successful, they both chose to continue, but Bungie not giving up as much freedom. The cycle could also have been profit based instead of time qualified.

2. Bungie approached Microsoft about this plan, and Microsoft agreed, thinking this could pave the way for other new developers who may want to join Microsoft to be able to without fear, considering Microsoft's "generosity."

Kyle Miller @ Oct 5th 2007 1:12PM

Maybe Bungie wanted things like a HDD they can program to and more than 9GB of disc space.

Grant @ Oct 5th 2007 1:31PM

AHHHHH!!!!!!!!!
APOCALYPSE!!!!!!!!!

crux @ Oct 5th 2007 1:35PM

Who knows for sure why it happened. Obviously it's not just Microsoft being benevolent as who would want them to do that. Not any shareholders that's for sure.

In any case, Bungie probably thinks they are better than they are. Relative to other independents they are fairly weak and their games only so-so. Heck, Halo 3 multi-player is really just an updated version of Quake Arena so if it came from "their earlier wandering around" then maybe they meant their earlier playing of Quake Arena.

Rk @ Oct 5th 2007 3:03PM

Jonah, I doubt your Business 101 class covered the Microsoft-Bungie debacle and no, not everyone studied Business so let's lay off people who want an explanation or who are in fact drawing their own valid conclusions from this. You don't KNOW what happened and why, you're just speculating from a textbook, and if this generation has taught us anything, it is that speculation is often misguided, nay?

DJ K, I totally agree - that would be incredible.

useedems @ Oct 5th 2007 3:11PM

Here's how it went down:

Bungie: toil toil toil toil *release halo3*
Microsoft: Awesome! Look at those sales numbers! Halo3 FTW!
Bungie: nice numbers, bonuses now pls, kthx
Microsoft: Bonuses? LOL!
Bungie: Gonna sue. Must make more money from world's most popular franchise of 2007.
Microsoft: Well all right, don't get mad. Here, split up on paper and you get some stocks.
Bungie: Score?

Paul @ Oct 5th 2007 3:26PM

Raise your hand if you are missing what is really going on here!!

(seeing everyone's hands in the air)

A deal like this takes months (perhaps even a year) to work out with the amount of things at stake here. This was planned and in process WELL before today and most likely WELL before Halo 3 was in the works. I wouldnt be suprised if in the original purchase contract with Microsoft it was stipulated that this would only be in effect for:

a) three halo games
or
b) certain sales goals were met.

This changes NOTHING except who how our pennies get distributed.